The Bitcoin price went into the weekend firing on all cylinders after the release of weaker-than-expected inflation data in the United States. Interestingly, an analyst has come forward with data and a fresh angle on the influence of the US on BTC and the general cryptocurrency market.
US Institutional Players: Major Catalysts Behind BTC’s Latest Rally
Crypto analyst Burak Kesmeci revealed in a post on the social media platform X that the Coinbase Premium Index has been a major indicator steering the Bitcoin price over the past two years. The Coinbase Premium Index is an on-chain metric that measures the difference between the BTC price on the US-based Coinbase exchange (USD pair) and the global Binance exchange (USDT pair).
Typically, when the metric’s value increases or moves into the positive territory, it implies rising demand from US investors, who are willing to pay more than other global investors to purchase the flagship cryptocurrency. On the other hand, the Coinbase Premium Index falling below the zero mark means that US investors are buying less than investors in other parts of the world.
Ultimately, the Bitcoin Coinbase Premium Index offers insight into the sentiment of US investors (mainly institutional players) and how it differs from that on global exchanges like Binance. According to Kesmeci, this indicator has a direct relationship with the Bitcoin price, suggesting that US investor demand plays a huge role in the BTC market dynamic.
The analyst wrote on X:
Kesmeci noted that this trend can be seen in the the recent price action, as the “easing of the negative pressure” in the Coinbase Premium Index has sparked the positive rally seen by the Bitcoin price. After the index turned positive over the past few days, the price of BTC followed with a run up to above $73,000.
The analyst published further data to show that the Coinbase Bitcoin Premiun Index are quite green on an hourly basis. “We can confirm with data that the locomotive carrying Bitcoin from 66K to 73K is the positive sentiment of US investors (especially whales),” Kesmeci concluded in the follow-up post.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $73,330, reflecting an over 1% jump in the past 24 hours.
Source: https://www.newsbtc.com/news/bitcoin/bitcoin-73k-rally-us-investors-major-driver/
